Bottleneck in commercial property predicted
A LACK of qualified assessors needed to approve new commercial property legislation could lead to a “bottleneck” in the industrial property market, agents are warning.
The EU Energy Performance of Buildings Directive is the commercial equivalent of the controversial Home Information Pack (HIP) – now a mandatory requirement for residential sales.
Under the terms of the Directive, it will be against regulations to publish marketing material or to show potential occupiers around the building until an Energy Performance Certificate (EPC) is in place.
In order to gain an EPC, owners will need accurate floor plans and approval from a qualified assessor.
According to Andrew Gent, of Leeds-based Gent Visick, the lack of qualified assessors, and the introduction of new rating schemes for unoccupied buildings could limit the number of properties coming on the market.
“Properties become 'illiquid' until such time as they have an EPC and in order to secure one, owners will need accurate and up to date floor plans of buildings. Where floor plans are not available, and EPC will be impossible to obtain,” he explained.
“The software and the relevant criteria for calculating an indicative rating are already available, and the Government will shortly be announcing which bodies will be appointed to assess and accredit assessors.
“The key question is whether there will be sufficient time between now and April for the selected bodies to certify sufficient assessors. Pre-empting the shortage of assessors is the only precaution any business or landlord can take.”
Introduced in the UK in January 2006 with a three year implementation plan, the Directive is designed to improve energy efficiency and reduce carbon emissions.
This will in turn assist the Government in meeting its objectives of achieving a sustainable environment and climate change targets agreed under the Kyoto Protocol.
From April 6 2008, all commercial buildings in excess of 10,000sq metres will require an EPC on construction, sale or leasing, while all public buildings with a floor area more than 1,000sq m will require a Display Energy Certificate.
By July 1, all buildings in excess of 2,800sq metres will require a certificate, and from October 2008, certificates will be required for all commercial buildings, regardless of size.
“Acting now to obtain indicative ratings ahead of when required could prove to be a very smart move,” said Mr Gent.
